Hungarian Opposition Leader Vows to Unlock EU Funds and Boost Economy

Hungarian Opposition Leader Vows to Unlock EU Funds and Boost Economy

Peter Magyar’s Election Promise

Hungarian opposition leader Peter Magyar pledged on Sunday to unlock billions of euros in suspended EU funding to revive Hungary’s struggling economy, if elected next year. He also committed to holding a national referendum on Ukraine’s potential membership in the European Union.

S&P Downgrades Hungary’s Credit Outlook

On Friday, Standard & Poor’s revised Hungary’s credit rating outlook from stable to negative, citing increasing risks to fiscal stability. These risks include:

• Ongoing trade tensions,
• Lower EU fund inflows,
• Rising debt servicing costs, and
• Budget loosening in the lead-up to the 2026 national election.

Orban’s Long Rule Faces Growing Challenges

Prime Minister Viktor Orbán, in power since 2010, has maintained a strained relationship with Brussels, particularly over rule-of-law reforms. These tensions have led to the suspension of key EU funds, worsening the country’s economic challenges. High inflation and stagnation have eroded growth over the past few years.

Magyar’s Economic Vision

Magyar, leader of the centre-right Tisza Party, claims that unlocking EU funds could increase Hungary’s GDP by at least 1%, generating an additional 800 billion forints (~$2.22 billion) for the national budget. He emphasized that predictable economic policy would help reduce debt financing costs.

Shifting Public Opinion

Recent opinion polls indicate that Magyar’s party may have overtaken Orbán’s nationalist Fidesz party in popularity, amid growing dissatisfaction with economic stagnation and uncertainty. Concerns have also risen about the impact of U.S. tariffs on EU imports, which could affect Hungary’s export-reliant economy.

Referendum on Ukraine’s EU Membership

Magyar highlighted that the issue of Ukraine joining the EU remains divisive within Hungary. He stated that once the exact conditions of Ukraine’s accession are known, his government would hold a binding referendum on the matter.

Orban’s Opposition to Ukraine’s EU Bid

Prime Minister Orbán has strongly opposed military and financial aid to Ukraine from NATO and the EU. He argues that Ukrainian membership would hurt Hungarian farmers and damage the wider economy.

Competing Economic Forecasts

The Hungarian government projects 2.5% economic growth in 2025. However, S&P’s forecast is more conservative at 1.5%, marking what would be the weakest three-year economic performance under Orbán’s 15-year tenure.

“Hungarian Opposition Leader Vows to Unlock EU Funds and Boost Economy” “Hungarian Opposition Leader Vows to Unlock EU Funds and Boost Economy” “Hungarian Opposition Leader Vows to Unlock EU Funds and Boost Economy”